AceTrader 1-wk TRIAL
www.AceTraderFX.com 24-Hr Real-time Signals Consistent Performance Intra-day, Daily, Weekly. with Email Alerts Function Try 1-week for $25 USD
Market Review - 25/09/2009 20:42 All times in GMT
Yen rallies broadly as Japan's Finance Minister restates his anti-intervention stance in G-20 summit
The Japanese yen rallied against its major counterparts on Friday as the new Japan's Finance Minister Hirohisa Fujii was quoted in the G-20 meeting that 'he opposed deliberately weakening the yen and any other currency'. His statement was interpreted by traders as a 'green light' to sell the dollar-yen and the pair fell to as low as 89.51, its lowest in 7 months, while sterling-yen, euro-yen and aussie-yen tumbled to 131.59, 142.77 and 77.57 respectively. The weaker-than-expected U.S. durable goods, which came out at -2.4% (versus forecast of 0.5%), also gave a boost to the yen due to its safe-haven appeal.
The single currency initially rebounded on short-covering in Asian session to above 1.47 level but then met renewed selling after the release of weak U.S. data and fell to 1.4623. However, investors stayed prudent ahead of weekend and squared some of their short positions, price rebounded to 1.4725 before retreating again in late U.S. session. Earlier in the day, the G-20 leaders agreed to avoid any premature withdrawal of stimulus packages, reflecting their caution on the global recovery (while there was no solid conclusion on the single currency, France's Sarkozy and Germany's Merkel did have some comments earlier this week).
The British pound extended this week's decline to as low as 1.5917 ahead of Tokyo opening (Bank of England Governor Mervyn King said in the previous day that sterling’s weakness helps in rebalancing the U.K.’s economy) and although price rebounded to 1.6046 in European session in tandem with euro, another round of cross-selling (especially against yen and euro) pressured sterling again and price just held above Friday's 4-month low of 1.5917.
Economic data to be released next week include:
CPI and HICP in Germany on Monday; National CPI and Tokyo CPI in Japan; import price index in Germany; GDP, current account, CBI distribution trade and consumer confidence in U.K.; business climate and economic sentiment in eurozone on Tuesday; Gfk survey index in U.K.; manufacturing PMI, industrial production, construction orders and housing starts in Japan; retail sales in Australia; unemployment change in Germany; HICP in eurozone; KOF indicator in Switzerland; ADP employment, PCE, GDP, personal consumption and Chicago PMI in U.S.; GDP and PPI in Canada on Wednesday; retail sales, Tankan big manufacturing, Tankan capex in Japan; Retail sales and Manufacturing PMI in Germany; PMI in Switzerland; Manufacturing PMI and Unemployment rate in eurozone; Manufacturing PMI in U.K.; Personal consumption, Personal income, PCE index, jobless claims, construction spending, ISM manufacturing and pending home sales in U.S. on Thursday; Household spending in Japan; Nationwide house price in U.K.; PPI in eurozone; non-farm payrolls, unemployment rate, average hourly earnings, revised durable goods and factory orders in U.S. on Friday.
Yen rallies broadly as Japan's Finance Minister restates his anti-intervention stance in G-20 summit
The Japanese yen rallied against its major counterparts on Friday as the new Japan's Finance Minister Hirohisa Fujii was quoted in the G-20 meeting that 'he opposed deliberately weakening the yen and any other currency'. His statement was interpreted by traders as a 'green light' to sell the dollar-yen and the pair fell to as low as 89.51, its lowest in 7 months, while sterling-yen, euro-yen and aussie-yen tumbled to 131.59, 142.77 and 77.57 respectively. The weaker-than-expected U.S. durable goods, which came out at -2.4% (versus forecast of 0.5%), also gave a boost to the yen due to its safe-haven appeal.
The single currency initially rebounded on short-covering in Asian session to above 1.47 level but then met renewed selling after the release of weak U.S. data and fell to 1.4623. However, investors stayed prudent ahead of weekend and squared some of their short positions, price rebounded to 1.4725 before retreating again in late U.S. session. Earlier in the day, the G-20 leaders agreed to avoid any premature withdrawal of stimulus packages, reflecting their caution on the global recovery (while there was no solid conclusion on the single currency, France's Sarkozy and Germany's Merkel did have some comments earlier this week).
The British pound extended this week's decline to as low as 1.5917 ahead of Tokyo opening (Bank of England Governor Mervyn King said in the previous day that sterling’s weakness helps in rebalancing the U.K.’s economy) and although price rebounded to 1.6046 in European session in tandem with euro, another round of cross-selling (especially against yen and euro) pressured sterling again and price just held above Friday's 4-month low of 1.5917.
Economic data to be released next week include:
CPI and HICP in Germany on Monday; National CPI and Tokyo CPI in Japan; import price index in Germany; GDP, current account, CBI distribution trade and consumer confidence in U.K.; business climate and economic sentiment in eurozone on Tuesday; Gfk survey index in U.K.; manufacturing PMI, industrial production, construction orders and housing starts in Japan; retail sales in Australia; unemployment change in Germany; HICP in eurozone; KOF indicator in Switzerland; ADP employment, PCE, GDP, personal consumption and Chicago PMI in U.S.; GDP and PPI in Canada on Wednesday; retail sales, Tankan big manufacturing, Tankan capex in Japan; Retail sales and Manufacturing PMI in Germany; PMI in Switzerland; Manufacturing PMI and Unemployment rate in eurozone; Manufacturing PMI in U.K.; Personal consumption, Personal income, PCE index, jobless claims, construction spending, ISM manufacturing and pending home sales in U.S. on Thursday; Household spending in Japan; Nationwide house price in U.K.; PPI in eurozone; non-farm payrolls, unemployment rate, average hourly earnings, revised durable goods and factory orders in U.S. on Friday.
